The Design and Use of Management Control Systems to Support The Achievement of Sustainability Agenda: A Comparative Study on Swedish and Indonesian Companies
(2024) BUSN79 20241Department of Business Administration
- Abstract
- The purpose of this study is to examine how companies in developed and developing countries have designed and utilized their MCSs to support the accomplishment of their sustainability agenda. The developed country is represented by Sweden, meanwhile, the developing country is represented by Indonesia.
This thesis utilized a qualitative approach to gain new insights on the topic. Data was collected through semi-structured interviews with four companies in Sweden and Indonesia. These respondents had expertise and knowledge in sustainability practice, thus they expressed their perspectives on the implementation of MCS to support the sustainability agenda.
The theoretical data is based on Malmi and Brown's MCS framework (2008). The MCS... (More) - The purpose of this study is to examine how companies in developed and developing countries have designed and utilized their MCSs to support the accomplishment of their sustainability agenda. The developed country is represented by Sweden, meanwhile, the developing country is represented by Indonesia.
This thesis utilized a qualitative approach to gain new insights on the topic. Data was collected through semi-structured interviews with four companies in Sweden and Indonesia. These respondents had expertise and knowledge in sustainability practice, thus they expressed their perspectives on the implementation of MCS to support the sustainability agenda.
The theoretical data is based on Malmi and Brown's MCS framework (2008). The MCS package includes five controls that can be utilized as an analytical tool to conduct a full study of the organization's sustainability strategy. The MCS package consists of cultural controls, planning controls, cybernetic controls, reward and compensation controls, and administrative controls.
The Swedish companies (Duni Group and Rug Company) have different sustainability agendas. Duni Group focuses on environmental issues. Conversely, Rug Company has an equal focus on achieving environmental, social, and economic goals. As an Indonesian company representing a developing country, PHI and energy companies are prioritized to handle environmental issues due to the nature of their operations. Regardless of their approach and goals in their sustainability program, the four case companies demonstrate the implementation of management systems (MCS) to support their sustainability programs. Therefore, the distinction between the four companies in the case is not related to their country classification, whether in developed or developing countries.
The integration of corporate sustainability agendas varies between companies in developed and developing countries. Despite these differences, all companies strive to align their sustainability strategies with organizational goals, though the companies face challenges such as establishing structured reward systems and solid budgeting approaches. Addressing these challenges is crucial for fostering fully integrated MCS that support sustainability goals and create positive societal impacts in demonstrating a global commitment to sustainable business practices. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9166339
- author
- Ivonny, Ivonny LU and Kristanti, Kalyana Mitta LU
- supervisor
-
- Elin Funck LU
- organization
- course
- BUSN79 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Management Control System, MCS package, Sustainability, Developed countries, and Developing countries
- language
- English
- id
- 9166339
- date added to LUP
- 2024-06-22 16:38:41
- date last changed
- 2024-06-22 16:38:41
@misc{9166339,
abstract = {{The purpose of this study is to examine how companies in developed and developing countries have designed and utilized their MCSs to support the accomplishment of their sustainability agenda. The developed country is represented by Sweden, meanwhile, the developing country is represented by Indonesia.
This thesis utilized a qualitative approach to gain new insights on the topic. Data was collected through semi-structured interviews with four companies in Sweden and Indonesia. These respondents had expertise and knowledge in sustainability practice, thus they expressed their perspectives on the implementation of MCS to support the sustainability agenda.
The theoretical data is based on Malmi and Brown's MCS framework (2008). The MCS package includes five controls that can be utilized as an analytical tool to conduct a full study of the organization's sustainability strategy. The MCS package consists of cultural controls, planning controls, cybernetic controls, reward and compensation controls, and administrative controls.
The Swedish companies (Duni Group and Rug Company) have different sustainability agendas. Duni Group focuses on environmental issues. Conversely, Rug Company has an equal focus on achieving environmental, social, and economic goals. As an Indonesian company representing a developing country, PHI and energy companies are prioritized to handle environmental issues due to the nature of their operations. Regardless of their approach and goals in their sustainability program, the four case companies demonstrate the implementation of management systems (MCS) to support their sustainability programs. Therefore, the distinction between the four companies in the case is not related to their country classification, whether in developed or developing countries.
The integration of corporate sustainability agendas varies between companies in developed and developing countries. Despite these differences, all companies strive to align their sustainability strategies with organizational goals, though the companies face challenges such as establishing structured reward systems and solid budgeting approaches. Addressing these challenges is crucial for fostering fully integrated MCS that support sustainability goals and create positive societal impacts in demonstrating a global commitment to sustainable business practices.}},
author = {{Ivonny, Ivonny and Kristanti, Kalyana Mitta}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Design and Use of Management Control Systems to Support The Achievement of Sustainability Agenda: A Comparative Study on Swedish and Indonesian Companies}},
year = {{2024}},
}